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Market check: Stocks lower at open on disappointing jobs report

Yahoo Finance's Jared Blikre breaks down the market action following the release of the December jobs report and the latest earnings reports.

Video Transcript

JULIE HYMAN: But we've got the opening bell now coming up as we watch these various movers.

They've got a virtual bell ringing. A lot of those continuing as we get underway in 2022 here.

And as we get underway and we're watching some of the opening prices here, the question really is going to be how things play out over the day today and not just in the stock market but in the bond market and as people try to figure out what the jobs report means, not just for the US economy but, of course, also for the Fed's future actions.

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As we start this morning, not much movement whatsoever in the major averages in response to that report, which maybe indicates sort of that indecision or uncertainty.

In terms of some other movers that we're watching-- and I think we're going to get more into some of the big movers in a minute in terms of thematic movers, but let's talk about T-Mobile for just a minute because that company came out with a customer update, and on the face of it, some of the numbers look pretty decent here. Postpaid net customer additions here for the company-- this is for the fourth quarter-- 1.8 million, which is above estimates, but churn seems to be a bit worse than estimated. And so it looks like the stock has been on a little bit of a bumpy ride in the premarket session and now as we get underway, Sozz.

BRIAN SOZZI: Yeah, I think traders are missing the point here. You know, certainly T-Mobile's priced for perfection. They had a very good last year. So I understand when you're getting a miss like this on churn-- those are people that would be leaving the platform, another were-- another way of saying churn.

But I think traders are missing the point here on what drove T-Mobile last year and what will likely continue to drive this stock and its fundamentals over the next 12 to 18 months. That is the ongoing integration of Sprint and those cost savings that continue to be wrung out of those Sprint operations. And then secondarily, those cost savings are being invested in share buybacks. I mean, T-Mobile right now is a very aggressive buyer of its stock here, and that is expected to continue for some time.

So I understand the market sell-off here. But again, I would say those two drivers that sent the stock up higher last year are very much still intact.

JULIE HYMAN: All right, let's talk about what's going on more broadly in the markets here this morning. And, Jared, it's so fascinating to see this jobs report come out. You know, tends to be a big market mover, and yet there's almost a paralysis going on, at least on the very top-line level here when you look at stocks.

JARED BLIKRE: Yeah, but you've got to look at the bond market, which I'm looking at right now on the YFi Interactive. The five-year T-note yield-- I'm just reading the headline here-- having its biggest weekly surge since President Trump was elected. You have to go back to 2016. Here's a five-year T-note yield up again to what is probably a 52-week high here. Yeah, you'd have to go back to the beginning of the pandemic to see 1.5 on the five year. And the 10 year, look at that. It's up a basis point, a whopping basis point, but to almost 1.75%. This is a level that we were hitting earlier-- well, I guess one year ago right there. 30 year also down just a fraction of a basis point. But the yield curve is contracting a little bit here.

Let's check out the sector action because this will perhaps confirm, I think-- in fact, we do have energy as the biggest leader once again. So that's the fourth time out of five. We can say that this morning.

Take a look at the five-day price action in energy. It's up 9% followed by financials up 4%. Nothing else really going on until you get to some of the losers. Utilities down 3 [INAUDIBLE], health care 4%, real estate 5%. There's been a huge rotation under the hood of the market.

And just kind of getting back to that jobs report, I'm going to put the NASDAQ 100 heat map as we talk about this. Just getting back to the jobs report, Carl Riccadonna over at Bloomberg Intelligence saying that January payrolls could go negative, so penciling in that March rate hike. And Deutsche Bank is saying that the Fed is going to start in March. They're going to hike four times next year. That could get walked back, and we'll have to see how that plays out. But these December numbers a little bit rearward facing, and I think the focus is really going to be on those inflation prints that we're going to get in another week or two.

So here's the NASDAQ. Not seeing a whole lot of outliers here. Looks like Chinese stocks getting a little bit of a bump. So let's check out the Chinese heat map, and indeed getting a nice bump there. On a five-day basis, still seeing tons and tons of red except for Alibaba. Alibaba is up 10%. Baidu up about 3%. But Tencent divesting itself of more stock. A lot of fears. That was kind of the headline this week out of China.

And let's take a look at the travel sector as well. This is a five-day look. So Carnival sitting on 6% gains. Norwegian Cruise Lines, 5%. Looks like American Airlines is up 4% for the week, 1% for the day. So nice to see the reopening trade getting some steam here.

And I bet we're going to see a lot of green in the banking sector, and indeed Wells Fargo up another 1%. This week, Wells Fargo up 13%. Huge, huge week for the banks as the yield curve overall steepens, even though it might be contracting a little bit today. But really interesting to see how this sector rotation continues to play out, guys.

JULIE HYMAN: There's one more thing I want you to look at, Jared, and it's red, and that is Bitcoin and crypto here this morning. They do not-- you know, I think we talked to somebody the other day and talked about how at one point Bitcoin was cited as an inflation hedge, right? And here we have 4.7% year-over-year average hourly earnings gains, and Bitcoin doesn't look like much of an inflation hedge right now.

JARED BLIKRE: Well, to be fair, neither is gold. But I think the big moves--

JULIE HYMAN: Right.

JARED BLIKRE: So the big moves this week really came off of the FOMC announcement. We saw a huge plunge not only in gold but also in the price of Bitcoin. Let's put up the YFi Interactive. Oh, we have it right there. Excuse me. But this was a big drop on the FOMC announcement, and guess what? Gold dropped too. So that tells me that it is a hedge because it's behaving like gold. So we can look at it that particular way.

But Bitcoin now testing some price levels that we haven't seen in at least three months. So here's a six-month view, and the real support doesn't really come in until $40,000. This is a big level that was in play in September that we see here.

Is it going to break? I don't know. I was getting-- I started turning bearish. I think it was late last year when Crypto.com said they were going to buy the Staples Center, and that has been kind of an omen that is reminiscent of the late '90s. So that's been my magazine-cover indicator. We'll wait for another one that says crypto is dead maybe to buy. Have to be a few months later probably.

JULIE HYMAN: Yeah, I think there was also the Matt Damon crypto commercial indicator which a lot of people have pointed to alongside that Crypto.com sponsorship.

Thanks so much, Jared. Appreciate it.